Consider a U

question 18

Multiple Choice

Consider a U.S. MNC who owns a foreign asset. If the foreign currency value of the asset is inversely related to changes in the dollar-foreign currency exchange rate,

• A)the company has a built-in hedge.
• B)the dollar value variability that is independent of exchange rate movements.
• C)both a and b
• D)none of the above

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Definitions:

Felsic Magmas

Magma that is high in silica and light in color, which forms rocks such as granite and rhyolite upon cooling.

Intermediate

A term used to describe entities or phenomena that fall in the middle of a specified range or scale, often used in geological contexts to describe rocks or volcanic activities with properties between felsic and mafic.

Main Batholith

A large body of igneous rock formed beneath the Earth's surface by the intrusion and solidification of magma.

Partial Melting

The process where only a portion of a solid mixture melts, resulting in the formation of magma with different composition from the original material.